​Preference for Public as Cloud accounts for third of enterprise IT infrastructure spending

Public or Private? That's the question...

Total spending on IT infrastructure products for deployment in cloud environments will increase by 24.6 percent in 2015 to reach $US32.8 billion, with businesses displaying a strong presence for Public Cloud - led by Amazon Web Services, Microsoft Azure and Google.

According to IDC findings, this amount includes spending on servers, storage (excluding double counting between storage and server), and Ethernet switch products.

In the coming year, spending on cloud IT infrastructure will grow from 28 percent of overall spending on enterprise IT infrastructure in 2014 to 32.9 percent in 2015.

In comparison, spending on IT infrastructure deployed in traditional, non-cloud, environments will decline -1.1 percent in 2015.

At $US67 billion it will remain the largest segment of the market.

IDC predicts that spending on private cloud IT infrastructure will grow by 19.1 percent year over year to $US12.4 billion, while spending on public cloud IT infrastructure will increase 28.2 percent year over year in 2015 to $20.4 billion.

“The growing sophistication and reliability of cloud services continue to drive increasing demand for public and private cloud offerings,” adds Natalya Yezhkova, Research Director, Storage Systems, IDC.

“End users find that through utilisation of multiple deployment models, including public cloud, on-premises and off-premises private cloud, and traditional IT infrastructure, they can achieve flexibility and agility tuned to the requirements of various legacy and next-gen workloads and applications.”

In most regions, Asia-Pacific included, spending on cloud IT infrastructure will grow at double-digit rates.

For all three technologies - server, storage and Ethernet switch - growth in spending will exceed 20 percent; spending on servers will grow at the highest rate, 26.7 percent.

For the five-year forecast period, IDC expects that spending on IT infrastructure for cloud environments will grow at a compound annual growth rate (CAGR) of 15.5 percent and will reach $US54.3 billion by 2019, accounting for 46.6 percent of the total spending on enterprise IT infrastructure.

Spending on non-cloud IT infrastructure will decline at a-1.7 percent CAGR during the same period.

Within the cloud segment, spending on public and private cloud IT infrastructure will grow at 16.6 percent and 13.8 percent CAGRs respectively.

In 2019, IDC expects service providers will spend $34.4 billion on IT infrastructure for delivering public cloud services, while spending on private cloud IT infrastructure will reach $US19.9 billion.

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